utilitarian approach to business ethics example

A CASE STUDY - STRATEGY AT H&R BLOCK, INC. 12 Utilitarian Approach Moral behavior produces the greatest good for the greatest number Critics fear a “Big Brother” approach and ask if the common good is squeezing the life out of the individual Example – Oregon’s decision to extend Medicaid to 400,000 previously ineligible recipients by refusing to pay for high-cost, high-risk procedures What Is A Utilitarian Approach. Utilitarian approach- This approach assesses an action in terms of the consequences and the outcomes. This seems very simple to claims one’s act to be ethical and is widely used in the practical world today. Preference utilitarianism suggests that a mid-point should be found between this ‘trade-off’ of consumers material preference and employees welfare preferences. Each theory includes specific traits or characteristics that focus on specific ethical principles that can help companies correct business issues. He concerned argue for the abolition of the monarchy, universal male suffrage (not simply linked to land), and guideline by parliament as judge of the common interest. Post author By Joseph; Post date July 6, 2018; In the history of philosophy, utilitarianism is known to be very powerful approach that has been useful for many years. Bentham’s fundamental axiom states that, “It is the greatest happine… As Hinman comments “utilitarians must answer the question of whom are these consequences for? JOHN STUART MILL (1806-73) Mill’s variation of utilitarianism was so different from Bentham’s that it almost appears that he rejects it. However, what about saving a suicide bomber from drowning, especially if he is about to kill dozens of people? If the outcome leads to the greatest good (or the least harm) for the greatest number of people, then it is assumed the end justifies the means. • Mill was keen to see fairer distribution of wealth and income and rejected the extreme form of free market economics. Examples for utilitarianism: business and workplace issues. For example, if the UK government fails to regulate carbon emissions, acid rain falls on Sweden. Five ways to shape ethical decisions: utilitarian approach. The Utilitarian Approach assesses an action in terms of its consequences or outcomes; i.e., the net benefits and costs to all stakeholders on an individual level. A few different business ethics theories exist, such as the utilitarian, rights, justice, common good and virtue approach. MAHAYANA-01 Utilitarianism and Business Ethics In this article, the author presents and supports a utilitarian approach to business ethics. Answer Utilitarianism is a consequentialist ethical approach – it focusses on the outcomes of an act to judge its ‘goodness’. Utilitarianism in the workplace focuses on ethics, democracy, rights and responsibilities within the business environment. Also read utilitarianism and business ethics essay. Therefore Act utilitarianism can also be used to justify many horrible and evil things, such as killing millions of people to achieve peace for example. The origins of this principle date back to the 18th and 19th centuries, beginning with the writings of the English legal reformer named Jeremy Bentham. ” – There is one excellent, enjoyment, and one evil, pain. Get a verified expert to help you with Utilitarianism and Business Ethics, Are You on a Short Deadline? Let a Professional Expert Help You, Ask a professional expert to help you with your text, Give us your email and we'll send you the essay you need, By clicking Send Me The Sample you agree to the terms and conditions of our service. If we delve deeper, we can see a lot of examples of utilitarianism in business and workplace. As Lawrence Hinman observes, the aim is to find “the greatest overall positive consequences for everyone” (Ethics, 136). Such rules as “always pay your taxes” suffer from this problem, that the rich are actually subsidising the poor. Academia.edu no longer supports Internet Explorer. The main idea of utilitarian ethics is: secure the greatest good for the greatest numb… Utilitarianism is already widely used as a business ethic approach, although it is not well developed in the literature. Sample papers. Utilitarianism is already widely used as a business ethic approach, although it is not well developed in the literature. BENTHAM (1748-1832) Bentham turned down Christianity and was influenced by David Hume (1711-76) and the French philosophe Helvitius, who argued that real justice was synonomous with the good of the whole. Utilitarian ethics makes all of us members of the same moral community. Ethical theories depend on what is right and wrong and the end result of the action. However, giving a dry biscuit to a man who is dying of thirst will increase his pain. The notion of ethical business practices has led to the formation of theories including the utilitarian theory, rights theory, justice theory, caring theory, and virtues theory, which have since been integral in the understanding of business ethics. Utilitarian ethics provides a foundation for addressing the above mentioned trends that arise in society. We are pleasure-seekers (hedonists). This study analyzes these theories in the context of the case of deaths at the Massey Energy Company. Enumerating certain trade-offs as a result of making design choices is a great example of using utilitarianism in engineering design. Mill would argue that we are concerned for others because of a general feeling of sympathy, which as a matter of fact, we all have. Utilitarianism provides a guiding framework of decision making rooted in social benefit which helps direct business toward more ethical behavior. The Utilitarian ethics was proposed by John Stuart. Utilitarian Ethics In Business . Utilitarianism is a philosophical approach that is very often applied to ethics. – Human nature is naturally encouraged by “2 sovereign masters, satisfaction and discomfort”. Although it is not embraced by all people, the utilitarian approach has been used by humans for many years. He developed the biggest happiness concept: “By the concept of energy is suggested that principle which approves or disapproves of every action whatsoever, according to the propensity which it appears to need to augment or reduce the happiness of the celebration whose interest is in question. People who work for income are members of the utilitarian organization. As with Bentham’s formulation, utilitarianism in business ethics is primarily concerned with outcomes rather than processes. According to this theory, the happiness or pleasure of the greatest number of people in society is considered as the greatest good. Our first approach: Utilitarian. Utilitarian Approach to Ethics ... Business analysts, legislators, and scientists weigh daily the resulting benefits and harms of policies when deciding, for example, whether to invest resources in a certain public project, whether to approve a new drug, or whether to ban a If one is to apply the Kantian theory on this situation – stealing as the maxim and the reason for doing is justifiable – the supervisor must be taught of a lesson, then stealing can become the universal law of getting even to supervisors. Thus, it is the intention behind an action rather than its consequences that make that action good. Design with a Utilitarian Approach in engineering is more about identifying these tradeoffs in design dilemmas, and weighing the costs and benefits that come with them. Utilitarianism provides a guiding framework of decision making rooted in social benefit which helps direct business toward more ethical behavior. , implementing new technology. • Goodness was based on more than just pleasure, but on the virtue of sympathy for our fellow human beings, a concern for their rights and our duty to promote the common good. Quantitative utilitarianism is concerned with aggregate utility maximization (i.e., maximizing the overall happiness of everyone) and uses a hedonic calculus to determine the rightness or wrongness of actions. To get better involved in the issue, the two different philosophical approaches should be taken into account. – The empirical computation might be made with a hedonic calculus which allocates hedons of enjoyment to various options. Examples Of Utilitarianism In Workplace . Utilitarianism ethics unwrapped. These theories can be used on their own or in combination with each other. Utilitarianism is already widely used as a business ethic approach. It should be stated that the business ethics can be viewed in two different dimensions, namely the utilitarian and deontological. Enter the email address you signed up with and we'll email you a reset link. For example, Reitz, Wall, and Love argued that utilitarianism isn’t an appropriate tool when outcomes affect a large number of separate parties with different needs or in complex processes whose outcomes and side effects can’t be readily foreseen, e.g. It strives to achieve the greatest good for the greatest number while creating the least amount of harm or preventing the greatest amount of suffering. This opinion is shared by Alasdair Macintyre when he states ‘Utilitarianism can justify horrendous acts as being for the pleasure of the many’. Quantitative utilitarianism, or Benthamite utilitarianism, is a branch of utilitarianism that was developed out of the work of Jeremy Bentham (1747-1832) – an English philosopher, economist, political scientist, legal scholar, and social reformer. Ethical Approaches To Decision Making . Philosophers Richard Brandt and Brad Hooker are major proponents of such an approach. The word total is important here: if you act ethically according to utilitarianism, you’re not maximizing yourhappiness, but the total happiness of the whole human race. "Mill's Theory of Utilitarianism" (in Gale Researcher Philosophy Series 1 and 2 (Internet Library Reference Database) (Detroit, MI. Saving a loving mother from drowning will make her, her husband, children, other relatives, and friends very happy. Utilitarianism holds that the most ethical choice is the one that will produce the greatest good for the greatest number. Why you must treat utilitarian, emotional and fanatical customers. The Utilitarian Approach assesses an action in terms of its consequences or outcomes; i.e., the net benefits and costs to all stakeholders on an individual level. Ethical behaviour of people doing business is very important in our society. Calculating Consequences: The Utilitarian Approach. Utilitarianism is already widely used as a business ethic approach, although it is not well developed in the literature. John Stuart Mill, a great 19th century utilitarian figure, spoke of benefits and harms not in terms of pleasure and pain alone but in terms of the quality or intensity of such pleasure and pain. Examples Of Utilitarianism In Business . In this article, I suggest and support a utilitarian approach to business ethics. It is a universal concept that all of us can understand. As with Bentham’s formulation, utilitarianism in business ethics is primarily concerned with outcomes rather than processes. If a tax is then placed on UK business to pay for this, the cost is borne by the UK taxpayer, the benefit is enjoyed by Sweden. Agents capture a suspect who, they believe, has information about where the bomb is planted. John Stuart Mill's idea of rule utilitarianism is an ideal approach to business ethics due to consideration of not only the consumer but the employees. 2.2 Utilitarian Ethics Utilitarian ethics is a normative ethical system that is primarily concerned with the consequences of ethical decisions; therefore it can be described as a teleological theory or consequentialist theory, which are essentially the same thing, both having a notion that the consequence of the act is the most important determinant of the act being moral or not. An example of this is an employee who resorted to stealing as a way of getting even to his or her supervisor who has unjustly treated him or her. "Utilitarianism and Business Ethics" in Business Ethics: A Philosophical Approach by Werhane and Donaldson Andrew Gustafson at the expense of the many taxpayers-because the relative significance of the taxes used for the trial are insignificant in comparison with the good of his fair trial.Bentham said that in each instance, we must consider the following aspects of the forcasted outcome:1. Mill adapted his form of the utilitarian theory so that it would reflect the fact that pleasures are not all of equal value, and that he took human nature into account. Utilitarianism is a normative, consequentialist, empirical viewpoint which connects the concept of a good action to one which promotes optimal pleasure or joy, discovered by including up expenses and benefits (or discomforts and enjoyments). All these normative ethics are tested using the Utilitarian approach. Hire a subject expert to help you with Kantian Approach to Business Ethics. Utilitarianism suffers from the difficulty that costs and benefits may not be equally distributed. spam or irrelevant messages, We use cookies to give you the best experience possible. As an ethical theory, it was supported by the works of John Stewart Mill and Jeremy Bentham. No business would attempt a project without evaluation of all relevant factors first, as well as taking other issues or risks into account that might jeopardise success. Ethics in the Workplace Classical and Contemporary Ethical Philosophies Ethical philosophies served as guide for people in the workplace to make moral decisions in conducting business. An example of this is an employee who resorted to stealing as a way of getting even to his or her supervisor who has unjustly treated him or her. Whether actions lead to unhappiness or happiness depends on the circumstances. (p. 138) The utilitarian approach to business ethics suggests that: A. people should be treated as ends and never purely as means to the ends of others. When applying utilitarian ethics, the most important consideration, which is a common interest for everyone, is the benefit it may give to the general population (Hammond 42).

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